Question

1) GDP does not include intermediate goods because

a. that would understate the true size of GDP.
b. intermediate goods are not useful to consumers.
c. that would count the value of intermediate goods twice.
d. intermediate goods are not valuable.

2) The dollar value of an industry's sales minus the value of intermediate goods is

a. NDP.
b. transfer payments.
c. value added.
d. GDP.

3)Which of the following is included in measuring GDP?

a. The value added at each stage of production of a final product.
b. The transfer of secondhand goods.
c. Household services rendered by homemakers.
d. The buying and selling of securities.

4) Value added is

a. the amount of dollar value contributed to a product at each stage of its production.
b. the dollar value contributed to a product at the last stage of its production.
c. the price of an intermediate product.
d. the sum of the prices of intermediate products.

Answer 1

value added is